Which activity is necessary during the underwriting process?

During the underwriting process, the primary activity involves evaluating risks and setting rates. Underwriting is a crucial function in the insurance industry, where underwriters assess the likelihood of an insured event happening by analyzing various risk factors associated with the applicant. This evaluation includes reviewing the individual's health history, lifestyle, or the condition of the property for property insurance, among other considerations.

Once the risk is evaluated, underwriters determine the appropriate premium that reflects the level of risk associated with providing coverage. This means that rates are set based on the statistical likelihood of claims being made, ensuring that the insurance company can remain financially solvent while providing fair pricing for the policyholders.

The other choices, while important in the broader context of insurance operations, do not directly relate to the underwriting process. Determining consumer satisfaction focuses on customer feedback and service, marketing the insurance product is aimed at promoting sales rather than assessing risk, and collecting premiums is a post-underwriting function related to maintaining cash flow rather than the initial assessment of risk before policy issuance.